Fannie Mae, Freddie Mac Don't Work

At yesterday's Conference on the Future of Housing Finance in Washington, each panelist was asked what they would change and what would they preserve regarding the government's ongoing role in the housing sector? Their prepared responses offered the expected spectrum, from lip service to real substance. But all agreed that the current models for Fannie Mae and Freddie Mac are not doing the job.

Each panelist represents a substantial stakeholder in the final policy proposal that's due to be presented to Congress in January 2011.

They were invited by the current administration, so you can bet that the fundamental underpinnings of such start here.